A distributed ledger Proof of Concept (PoC) has already begun with the goal of “future-proofing” the UAE’s Central Bank.

However, the project is still in early stages. “It is just a study between UAE and Saudi Arabia,” al Mansouri explained. “[We] have not gone deeper into it.”

A World First?

Not too long ago, the UAE Central Bank condemned cryptocurrencies as risky and unregulated. The Khaleej Times reported in October 2017 that al Mansouri warned people of the perils of “digital coins.” Clearly, the bank chose not to follow this advice.

In fact, the UAE is doing the opposite.

While remarkable, that is hardly groundbreaking. But proposing a joint digital currency between national governments certainly is.

“This is probably the first time ever that witnesses the cooperation of monetary authorities from different countries on this topic.” – Mubarak Rashed al Mansouri, CEO of Emirates Investment Authority

Saudi Arabia and the UAE, a kingdom and a federation of 7 emirates respectively, have historically held close economic bonds. The nations share a border and both face onto the Persian Gulf.

If successful, this latest venture will bring them closer than ever and set an important precedent. Al Mansouri hopes that this achievement will encourage similar collaboration in the region.

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